Configuring Currencies and Exchange Rates

Fluid supports multi-currencies, allowing financial data to be recorded in various currencies while reporting in a default currency. This flexibility ensures accurate financial management across different regions and projects.

Setting up currencies correctly is important for several reasons:

• Accurate Financial Reporting: Ensures all financial data is consistently reported in the default currency, providing a clear and unified financial picture across the organisation. This consistency is vital for decision-makers who rely on accurate, comparable financial data to assess performance and make strategic decisions.
  
  

• Regional Flexibility: Allows financial data to be recorded in the currency relevant to the region or project, enhancing accuracy in forecasting and invoicing. This is particularly important for multinational organisations managing projects across different countries, as it helps in understanding the financial impact in the local economic context.
  
  

• Managing Exchange Rates: Setting appropriate conversion rates ensures that financial data reflects the true economic value, accounting for fluctuations in exchange rates. This management of exchange rates helps in mitigating risks associated with currency volatility, ensuring that financial planning and reporting remain robust and reliable.

It is essential to configure currencies and exchange rates before recording project financials. Conversion rates are applied at the time forecasts or actuals are entered, meaning any changes to exchange rates afterward will not retroactively update existing financial data.

Steps to Set Up Currencies and Exchange Rates

1 - Access the Currency Management Page:

• Navigate to the Financial Administration page from the dropdown menu under the avatar.

• Select "Currency Management" under Financial Settings.

2 - Add or Edit Currencies:

• Add Currency: Click on the "Add Currency" option to create a new currency entry.

• Edit Currency: Click the edit pencil icon next to an existing currency entry to modify it.

3 - Configure Currency Details:

• Currency Name: Full descriptive name of the currency (e.g., United States Dollar, Great British Pound).

• Code: The currency code (e.g., USD, GBP).

• Symbol: The currency symbol (e.g., $, £).

• Conversion Rate to Default Currency: The rate for converting financials from the local currency to the default currency.

• Conversion Rate to Default Restated: An alternative conversion rate for restating financials to avoid FX fluctuations in reporting.

• Active/Inactive: Set the currency as active or inactive.

• Default Currency: Mark if this is the default reporting currency for the instance.

• Locked: Lock the currency to prevent selection by users if needed.

Note that you can set specific conversion rates for each month by downloading and uploading the Currency & Rates Excel spreadsheet from the Financial Administration page. This allows you to override the default rates with more accurate monthly data.

You can also set up currencies in bulk using the Bulk Edit functionality. 

For a detailed guide on setting up currencies, read this article.